Piper Sandler lowers Driven Brands stock price target to $19 from $22

Investing.com - Piper Sandler has reduced its price target on Driven Brands (NASDAQ:DRVN) stock to $19.00 from $22.00 while maintaining an Overweight rating on the shares. Currently trading at $15.50, the stock sits below analysts’ consensus target range of $18-25, with InvestingPro analysis indicating the company is slightly undervalued based on its Fair Value model.

The research firm expects Driven Brands to experience a comparable sales deceleration from Q2’s +1.7% to approximately flat in Q3, primarily due to difficult year-over-year comparisons in the International Car Wash segment.

Piper Sandler anticipates the company’s Take 5 segment will deliver a healthy comparable sales growth of approximately +5%, though this represents a moderation from Q2 performance, attributed to a seasonal slowdown.

The firm noted that collision claims in the Franchised Brands segment likely haven’t improved, citing mixed used car pricing as a contributing factor.

Looking ahead, Piper Sandler referenced Planatlyics’ European weather analysis, which indicates a higher probability of increased rainfall in greater Europe, a factor that could impact future performance.

In other recent news, Driven Brands Holdings Inc. has successfully completed a $500 million securitization offering. The Series 2025-1 Fixed Rate Senior Secured Notes, which mature in October 2055 with an anticipated repayment date in October 2030, were priced at a 5.296% coupon. The notes received ratings of BBB from Kroll Bond Rating Agency and BBB- from S&P Global Ratings. In terms of stock assessments, Canaccord Genuity has reiterated its Buy rating for Driven Brands, maintaining a price target of $24.00. Meanwhile, JPMorgan upgraded the company’s stock rating to Overweight, increasing its price target to $23.00, citing defensive demand and market share gains in the Take 5 business. Additionally, Driven Brands announced the appointment of Mo Khalid as Executive Vice President and Chief Operating Officer. Khalid will be succeeded in his current role by Tim Austin, the current Chief Operating Officer of Take 5. These developments reflect a period of strategic growth and operational changes for the company.

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